While
certain states are going after Amazon mainly due to the fact that the
retailer's affiliates operate within these states, and because they need a way
to offset huge budget deficits, they're not the only ones who have a bone to
pick with Amazon. Brick-and-mortar competitors like Best Buy and Sears also
want to see the retail giant collect taxes because
they see Amazon as having an unfair advantage.

Amazon is
cutting loose from more U.S. states that continuously
pressure the retailer to collect taxes. For instance, Illinois
just passed a new law that requires online retailers to collect taxes if they
have affiliates in the state. Amazon's answer to that is to cancel affiliate
programs in the state of Illinois.

In
addition, both Texas and California are considering bills that would tax online
sales. Amazon made it clear that it will simply continue to drop affiliates in
U.S. states if the states continue down this path.

"We
will continue to drop states who pass those affiliate laws, from the affiliate
program," said Chief Executive Jeff Bezos. "In the U.S., the
constitution prohibits states from interfering in interstate commerce. The
sales tax collection is very complicated. The right place to fix this is with
federal legislation."

"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner